Alaska credit union closes accounts connected to pot businesses
FAIRBANKS, Alaska (AP) — A federally chartered Alaska credit union has restricted the personal accounts of people starting marijuana businesses.
A spokeswoman for Alaska USA Federal Credit Union confirmed that 10 accounts linked to people starting a marijuana-related business have been restricted, the Fairbanks Daily News-Miner reported.
The credit union in July sent a letter to account holders applying for a state license for a cannabis business. They were told to close credit union accounts by Aug. 19.
“Alaska USA is a federally chartered credit union, we do not offer account services to any person or organization engaged in the operation of a marijuana-related business, or any other type of business that violates federal law,” the letter said.
Alaska voters in 2014 voted to legalize recreational pot. The state is creating regulations for people who want to legally grow, sell and test marijuana. However, no state-sanctioned stores or businesses have opened.
Elizabeth Behlke, vice president of marketing for Alaska USA, said the credit union followed the law in sending the letter.
The U.S. Department of Justice in a February 2014 memorandum says financial institutions that conduct transactions generated by marijuana-related conduct are subject to prosecution under money-laundering laws.
Northrim Bank, Wells Fargo, Mt. McKinley Bank and First National Bank of Alaska also are monitoring accounts.
“We will be monitoring the licensing process, and we will reach out to any of our existing customers who are successful in getting a license to discuss our policies,” Patty Mongold, president of Mt. McKinley Bank, said in an email.
It’s well known that no Alaska financial institution will open an account for a cannabis business, said Cary Carrigan, director of the Alaska Marijuana Industry Association, but scrutiny of personal accounts is new.
“We understand the position of the banking industry, but this all seems a bit premature,” he said. “You certainly don’t arrest people for poaching before they have a line in the water. It doesn’t make sense for the banking industry to go after people who are only applying for licenses.”
Kevin Anselm, director of the Alaska Division of Banking and Securities, said financial institutions in other states have closed personal accounts for people in the marijuana business.
However, some Alaska financial institutions in Alaska are considering serving those customers, Anselm said.
“These discussions likely include weighing the financial, market and reputational risks of serving or declining marijuana-related accounts,” he said.
Information from: Fairbanks (Alaska) Daily News-Miner, http://www.newsminer.com
